Textile industry hopeful for a cut in GST rate on synthetic fiber

In a meeting held recently with the Union Finance Minister Nirmala Sitharaman, the textile industry had urged for a uniform GST rate for the entire sector

The textile industry is seeking a cut on goods and services tax (GST) from the GST Council meeting on Friday.

At a recent meeting with Union Finance Minister Nirmala Sitharaman, it had urged a uniform GST rate for the entire industry. 

Currently, the cotton textile value chain — yarn, fabric, apparel, and others — attracts a uniform GST rate of five per cent. Purified terephthalic acid (PTA), the key input in making polyester yarn and fabric attracts 18 per cent. And, polyester yarn and fabric are taxed at 12 per cent and five per cent, respectively.

“Because of the current inverted tax structure,